Eddie Company has been in business for several years. During those years they reported steadily increasing profits. However, according to information obtained from a whistleblower, Eddie Company is suspected to do financial statement fraud. The possibility of such fraud is in the inventory account. Below here is information taken from a part of financial statement of Eddie Company Account Revenues Year 1 ($) 106,095 Year 2 ($) 134,347 Year 3 (S) Year 4 ($) 167,147 262,268 Year 5 ($) 352,523 Cost of Goods Sold (83,327) (105,313) (127,619) (194,371) (272,255) Gross Profit 22,768 29,034 39,528 67,897 80,268 Inventory 18,062 21,964 25,543 59,864 109,072 Account Payable 13,741 18,184 23,077 51,723 50,022 Instructions: a.Describe the potential fraud scheme carried out by Eddie Company! b. Describe the audit procedures you used in order to check those tables for potential fraud or misstatement. c. Using the data above, determine these two ratios for each year, and then present analysis in accordance with those results! -Ratio of Days Sales to Inventory - Inventory to Accounts Payable Ratio d. How will you follow up on these audit findings? What additional audit evidence will you gather?